Only About 5 Percent of All U

question 31

Multiple Choice

Only about 5 percent of all U.S. businesses are _____, but they account for approximately 62 percent of all business receipts.

• A) partnerships
• B) limited liability companies (LLCs)
• C) corporations
• D) sole proprietorships
• E) N one of these are correct.

Identify and record foreign exchange gains or losses at both the year-end and settlement dates.

Analyze the causes of fluctuation in foreign exchange rates.

Understand the impact of foreign exchange on the recording of sales and purchases in financial statements.

Understand the accounting treatment for monetary items in foreign currencies at the end of reporting periods.

---

Definitions:

Transactions Need

encapsulates the necessity for exchanges or trades to occur within an economy or market for goods, services, financial assets, or currencies.

Zero-Balance Account

A bank account in which the balance is maintained at zero by automatically transferring funds from a master account.

Compensating Balance

A compensating balance is a minimum balance that must be maintained in a bank account, required by some banks in order for their customers to obtain or maintain a loan.

Master Account

A central account that holds funds or securities, often used by institutions to manage multiple sub-accounts.